The newspaper reported last week that Bennington Enterprises earned $18.5 million this year. The report also stated that the firm's ROE is 17 percent. Bennington retains 85 percent of its earnings. a. What is the firm's earnings growth rate? (Round the answer to 2 decimal places.) Earnings growth rate b. What will next year's earnings be? (Enter the answer in dollars, not millions of dollars. Omit $ sign in your response.) Next year's earnings $ %

The newspaper reported last week that Bennington Enterprises earned $18.5 million this year. The report also stated that the firm's ROE is 17 percent. Bennington retains 85 percent of its earnings. a. What is the firm's earnings growth rate? (Round the answer to 2 decimal places.) Earnings growth rate b. What will next year's earnings be? (Enter the answer in dollars, not millions of dollars. Omit $ sign in your response.) Next year's earnings $ %

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 6P: In its most recent financial statements, Del-Castillo Inc. reported 70 million of net income and 900...

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